1. At a Glance
DAM Capital Advisors, the investment bank that popped onto the bourses inDec 2024, has the swagger of an ECM deal machine (72 transactions signed) but just dropped a quarterly net profit that looks like a typo:₹0.23 Cr. From advising Nirma on its ₹5,650 Cr Glenmark Lifesciences buyout to handling IPOs, DAM plays with big boys’ toys. But this quarter, the capital markets dried up faster than your enthusiasm after seeing brokerage fees. Still, with64% ROCEand49% ROE, the company is flexing efficiency like it’s running a “Lean Investment Bank™” model.
2. Introduction
Every market cycle produces two characters: (1) companies that ride liquidity waves and (2) companies that drown the moment the tide turns. DAM Capital Advisors is trying desperately to prove it belongs in the first category.
This is not your old-school stodgy broking house; DAM is a hybrid animal—equal parts ECM execution desk, M&A whisperer, and institutional broker. One quarter they’re shoving IPO papers down SEBI’s throat, the next they’re telling Reliance which candy brand to buy (yes, Ravalgaon’s IP).
But the market gods are cruel. Q1 FY26 was a cold shower: revenues dropped 31% YoY, PAT tanked 99%. In banking terms, that’s like serving caviar last quarter and instant noodles this quarter. Yet investors shouldn’t panic: capital markets advisory is cyclical by nature. One blockbuster IPO season and DAM could be back in champagne mode.
The question is: can this boutique-ish firm sustain its “deal hunger” in a world where big players like Motilal Oswal and Angel One keep muscling in?
3. Business Model (WTF Do They Even Do?)
DAM Capital runs on two engines:
1. Investment Banking
- Equity Capital Markets (IPOs, QIPs, rights, buybacks, OFS).
- M&A Advisory (think: Nirma-Glenmark, Ravalgaon IP sale).
- Private Equity placement, structured finance.
2. Institutional Equities
- Broking + Research, serving 263 active clients across India, US, UK, Europe, Hong Kong, Singapore, Australia, Taiwan, South Korea, Middle East, South Africa.
- Overseas arm: DAM Capital (USA) Inc.
Value Add:
- Boutique size,
- nimble structure, strong ECM execution record.
- But no sticky annuity revenue streams (like AMC or lending). It’s eat-what-you-kill banking.
Translation for lazy investors: DAM doesn’t sell soap or cement; it sellsdeals. If there are no deals, revenue = “bhaiya, aaj kuch nahi hua.”
4. Financials Overview
Quarterly (Q1 FY26 vs Q1 FY25 vs Q4 FY25)
| Metric | Jun ’25 | Jun ’24 | Mar ’25 | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | ₹30.8 Cr | ₹44.4 Cr | ₹36.6 Cr | -30.6% | -15.8% |
| EBITDA | ₹6.0 Cr | ₹26.7 Cr | ₹13.2 Cr | -77.4% | -54.3% |
| PAT | ₹0.23 Cr | ₹22.1 Cr | ₹8.5 Cr | -99.0% | -97.3% |
| EPS (₹) | 0.03 | 3.13 | 1.20 | “Not Meaningful” | “Don’t Ask” |
Annualised EPS at this run-rate = meaningless. P/E based on this quarter? Also meaningless.
5. Valuation (Fair Value RANGE Only)
- P/E Method:FY25 EPS = ₹14.7. At 12–18×, FV = ₹175 – ₹265.
- EV/EBITDA Method:EV ₹1,288 Cr / FY25 EBITDA ₹147 Cr = 8.8×. Peer range 10–15× → FV = ₹200 – ₹300.
- DCF Lite:Assuming 15% CAGR in a good cycle, FV = ₹190 – ₹240.
📌Educational FV Range:₹175 – ₹265.(Not investment advice, only financial entertainment.)
6. What’s Cooking – News, Triggers, Drama
- IPO Mandates: 27 IPOs signed, pipeline stacked. If SEBI approvals align with bull markets, fees will flow.
- High-Profile Deals: Glenmark
